GST Council meeting possible on 14 June
GST Council is scheduled to meet next month. The finance ministry is not in favour of raising the GST tax rate on non-essential commodities, despite tax collections falling due to the lockdown amid the COVID-19 pandemic. Sources said that if the GST rate is increased on non-essential items, it will reduce their demand. Ultimately, this will reduce the speed of the economy to return to track.
He said that the economy would have to do better on every front after the lockdown. For this, there is a need to increase demand apart from essential commodities. Sources said that the GST Council will take a final decision on increasing the rate of GST. The GST Council consists of the Finance Ministers of all states and union territories. The country’s finance minister is its chairman. It is the apex entity for taking any decision related to GST. The 39th meeting of the GST Council was held in March.
The GST tax rate was then reduced on many items. The lockdown continues in the country from 25 March. Due to this the GST collection of the government has come down. The government has not yet released the GST collection data for April. Sources also said that the government has not yet taken any decision on deficit monetization (note printing) to complete the fiscal wharf. Sources said that what the COVID 19 epidemic is going to take is further on the economy. No one knows what the effect will be. Even globally, no country can say what will be the situation after three months.
The Goods and Services Tax (GST) Council may meet on June 14 amid pressure on the tax collection front. This will be the first meeting of the GST Council after the onset of the coronavirus epidemic. Lockdown is in place across the country from March 25 to prevent the spread of the coronavirus epidemic.
The tax collection has been affected due to this. The GST Council is chaired by the Union Finance Minister and includes representatives from all states and union territories. According to sources, the likely meeting of the GST Council on June 14 will be through video conference.
It is noteworthy that in the 39th meeting of the GST Council held in March, the impact of the coronavirus epidemic on the economy was discussed. While the cases of infection of this epidemic in India were quite low at that time and the lockdown was not implemented at the same time. Meanwhile, GST rates on non-essential items in the next meeting of the GST Council, despite the fall in revenue collection due to the Ministry of Finance nationwide lockdown. The sources said that if the rates of GST on non-essential commodities are increased, the demand for these items will be reduced further. This will hamper the overall economic recovery.